Financial Data and Key Metrics Changes - Third quarter revenue was $634 million, exceeding the high end of guidance by $9 million, but down 8% year-over-year and 4% sequentially [4][13] - Consolidated gross margin for Q3 was 29.1%, a decline of 190 basis points year-over-year and 70 basis points sequentially [13] - Adjusted EBITDA for Q3 was $57.5 million, representing 9.1% of revenue, which was 90 basis points above the high end of guidance [4][13] - Net income for Q3 was $29 million, compared to a net loss of $116 million in the prior quarter [19] Business Line Data and Key Metrics Changes - Nurse and Allied revenue was $361 million, down 9% year-over-year but exceeding guidance due to higher travel nurse volume and $12 million in labor disruption revenue [14] - Physician and Leadership Solutions segment revenue was $178 million, down 1% year-over-year but up 2% sequentially, with locum tenens revenue growing 3% year-over-year [16] - Technology and Workforce Solutions revenue was $95 million, down 12% year-over-year and 7% sequentially, primarily due to lower VMS revenue and the sale of SmartSquare [18] Market Data and Key Metrics Changes - Permanent hiring activity in the healthcare sector fell notably in Q3, indicating a shift towards more flexible workforce strategies [5] - The spread between travel nurse bill rates and fully loaded permanent nurse compensation is at a historical low, which may influence future hiring strategies [5] - Demand for travel nurses has increased by approximately 50% since mid-May, although it remains slightly below year-over-year levels [31] Company Strategy and Development Direction - The company aims to gain market share by enhancing technology, processes, and customer focus, with a strong emphasis on total talent solutions [11][41] - The strategy includes expanding service lines and improving fill rates, particularly in vendor-neutral programs [11][12] - The company expects to see more favorable revenue mix and growth in higher-margin businesses, particularly in international staffing [37] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market remains competitive, there is rationality among competitors, and the focus is shifting towards total talent solutions [41] - The company anticipates modest year-over-year growth in nurse and allied revenue for Q4, with expectations for improved gross margins in 2026 [10][20] - Management expressed confidence in the recovery of demand and the ability to fill orders effectively, particularly as clients recognize the affordability of contingent labor [45][49] Other Important Information - The company completed a debt refinancing transaction, improving its financial position and extending the earliest debt expiration to 2029 [10][20] - Cash and equivalents as of September 30 were $53 million, with total debt at $850 million and a net leverage ratio of 3.3 times [19] Q&A Session Summary Question: Can you help us understand the drivers of gross margin guidance? - Management explained that the gross margin in Q3 was positively impacted by labor disruption, and the expected decline in Q4 is due to a mix of lower-margin revenue from certain segments [24][26] Question: What is the underlying performance of the business excluding labor disruption? - Management indicated that excluding labor disruption, the EBITDA margin would be in the mid-sixes range, reflecting the impact of the labor disruption event on overall performance [28] Question: Are the recent increases in demand due to winter orders or underlying improvements? - Management noted that demand has improved due to both seasonal factors and broader market conditions, with a significant recovery since mid-May [31] Question: How do you view the competitive landscape currently? - Management stated that while competition remains, it is rational, and there is a growing preference for total talent solutions among clients [41] Question: What are the expectations for clinician supply and demand? - Management reported a healthy supply of clinicians overall, with specific challenges in locums, and emphasized the importance of pricing orders correctly to fill them [56][58] Question: How is the company leveraging MSP relationships for locums? - Management highlighted intentional moves to support locums MSPs and noted significant improvements in fill rates for these clients [76][78]

Q3 2025 Financial Performance - Revenue for Q3 2025 was $634.5 million, compared to $687.5 million in Q3 2024, a decrease of 7.7%[9] - Gross profit for Q3 2025 was $184.4 million, with a gross margin of 29.1%, compared to $213.1 million and 31.0% respectively in Q3 2024[9] - Operating income for Q3 2025 was $47.6 million, resulting in an operating margin of 7.5%, compared to $22.3 million and 3.2% respectively in Q3 2024[9] - Net income for Q3 2025 was $29.3 million, or $0.76 per share, compared to $7.0 million, or $0.18 per share in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was $57.5 million, with an adjusted EBITDA margin of 9.1%, compared to $73.9 million and 10.7% respectively in Q3 2024[9] Segment Performance - Nurse & Allied Solutions revenue was $361 million in Q3 2025, a 9.5% decrease year-over-year[9] - Physician & Leadership Solutions revenue was $175 million in Q3 2025, a 1.3% decrease year-over-year[9] - Technology & Workforce Solutions revenue was $95 million in Q3 2025, an 11.8% decrease year-over-year[9] Balance Sheet and Cash Flow - Cash and cash equivalents totaled $53 million as of September 30, 2025, compared to $42 million as of June 30, 2025[35] - Net cash provided by operating activities was $23 million in Q3 2025, compared to $67 million in Q3 2024[37] - Free cash flow was $15 million in Q3 2025, compared to $47 million in Q3 2024[37] Q4 2025 Financial Guidance - Consolidated revenue is projected to be between $715 million and $730 million[39] - Gross margin is expected to be between 25.5% and 26.0%[39] - Adjusted EBITDA margin is projected to be between 6.8% and 7.3%[39]

Core Insights - AMN Healthcare Services reported a year-on-year revenue decline of 7.7% to $634.5 million in Q3 CY2025, although it exceeded Wall Street expectations by 2.7% [6][7] - The company’s revenue guidance for the next quarter is $722.5 million at the midpoint, which is 16.4% above analysts' expectations [6][7] - Despite the revenue decline, AMN Healthcare's adjusted EPS of $0.39 was 95.2% above analysts' consensus estimates, although it represents a 10.5% annual decline [6][13] Revenue Performance - Over the last two years, AMN Healthcare's travelers on assignment averaged a 20.5% year-on-year decline, indicating a struggle with demand [1] - The company has experienced an 18.6% annual revenue decline over the past two years, reflecting a loss of previous gains [2] - AMN Healthcare's sales growth over the last five years was a modest 2.9% compounded annual growth rate, which is below industry standards [3] Profitability Metrics - The average operating margin for AMN Healthcare over the last five years was 7.1%, which is considered weak for a healthcare business [9] - The operating margin decreased by 20.2 percentage points over the last five years, indicating rising expenses that could not be passed onto customers [10] - In the latest quarter, the operating margin improved to 7.5%, up 4.3 percentage points year on year, suggesting improved efficiency despite revenue decline [11] Future Outlook - Company management is guiding for a 1.7% year-on-year decline in sales for the next quarter, while sell-side analysts expect a 7.3% revenue decline over the next 12 months [7] - The stock price increased by 5.3% to $19.40 immediately after the earnings report, indicating a positive market reaction despite underlying challenges [14]

Financial Performance - Q3 2025 consolidated revenue was $634 million, an 8% decrease year-over-year and a 4% decrease sequentially[1]. - Adjusted EBITDA for Q3 2025 was $58 million, a 22% decrease year-over-year, with an adjusted EBITDA margin of 9.1%[11]. - Net income for Q3 2025 was $29 million, or $0.76 per diluted share, compared to a net loss of $88 million in Q3 2024[1]. - Total revenue for Q3 2025 was $634.5 million, a decrease of 7.7% from $687.5 million in Q2 2025 and a decrease of 12.4% from $658.2 million in Q3 2024[31]. - Gross profit for Q3 2025 was $184.4 million, resulting in a gross margin of 29.1%, down from 31.0% in Q2 2025 and 29.8% in Q3 2024[31]. - Operating income for Q3 2025 was $47.6 million, with an operating margin of 7.5%, compared to an operating loss of $123.7 million in Q2 2025[31]. - Net income for Q3 2025 was $29.3 million, or $0.76 per diluted share, compared to a net loss of $116.2 million in Q2 2025[32]. - The total revenue for the nine months ended September 30, 2025, was $1.982 billion, down from $2.249 billion in the same period of 2024, indicating a decrease of approximately 11.9%[39]. Segment Performance - Nurse and Allied Solutions segment revenue was $361 million, down 9% year-over-year, with travel nurse staffing revenue decreasing by 20%[6]. - Physician and Leadership Solutions segment revenue was $178 million, down 1% year-over-year, with locum tenens revenue increasing by 3%[7]. - Technology and Workforce Solutions segment revenue was $95 million, a 12% decrease year-over-year, primarily due to the sale of Smart Square[8]. - The average number of travelers on assignment in the Nurse and allied solutions segment was 8,203 for the three months ended September 30, 2025, compared to 9,176 in the same period of 2024[39]. - Revenue per day filled in the Physician and leadership solutions segment was $2,764 for the three months ended September 30, 2025, compared to $2,562 in the same period of 2024, showing an increase of approximately 7.8%[39]. Cash Flow and Financial Position - Cash flow from operations was $23 million, and the company paid off its revolving line of credit using proceeds from the sale of Smart Square, totaling $65 million[3]. - Cash and cash equivalents at the end of Q3 2025 were $82.9 million, an increase from $72.5 million at the beginning of the period[36]. - Total assets decreased to $2.14 billion as of September 30, 2025, down from $2.42 billion at the end of 2024[34]. - Total liabilities were $1.49 billion as of September 30, 2025, compared to $1.71 billion at the end of 2024[34]. - Net cash provided by operating activities for Q3 2025 was $22.7 million, a significant decrease from $66.7 million in Q2 2025[36]. - The company reported a net cash used in financing activities of $71.2 million in Q3 2025, compared to $60.5 million in Q2 2025[36]. Guidance and Future Outlook - Fourth quarter 2025 revenue guidance is projected at $715 - $730 million, with a gross margin of 25.5% - 26.0%[15]. - Labor disruption revenue in Q4 2025 is expected to be approximately $100 million, compared to $62 million in the prior-year quarter[16]. - The company provided guidance for the adjusted EBITDA margin for the fourth quarter of 2025, estimating it to be between 6.8% and 7.3%[42]. Debt and Financial Management - The company refinanced its senior unsecured notes due in 2027 with new notes due in 2031, enhancing financial flexibility[4]. - The company’s leverage ratio as of September 30, 2025, was 3.3, an increase from 2.8 as of December 31, 2024[41]. Goodwill and Impairment - Goodwill decreased to $755.8 million as of September 30, 2025, down from $897.5 million at the end of 2024[34]. - The company reported a goodwill impairment loss of $109.515 million for the nine months ended September 30, 2025[38]. Non-GAAP Measures - Management included non-GAAP measures to provide investors with an alternative method for assessing the Company's operating results focused on operating performance[10]. - Management believes adjusted net income is not indicative of the Company's operating performance but is used in conjunction with GAAP measures[10]. - Tax benefits and deficiencies related to equity awards vested and ESPP are included in the adjustments for non-GAAP measures[10].

Core Insights - AMN Healthcare Services reported third quarter 2025 revenue of $634 million, an 8% decrease year-over-year, with adjusted EBITDA of $58 million, reflecting a 22% decline from the previous year [1][4][10] - The company achieved a net income of $29 million, significantly up from $7 million in Q3 2024, resulting in diluted earnings per share of $0.76 compared to $0.18 a year ago [1][4][10] - The company anticipates fourth quarter 2025 revenue to be between $715 million and $730 million, with expectations of a sequential increase in travel nursing demand [14][15] Financial Performance - Consolidated revenue for Q3 2025 was $634.5 million, down 8% from Q3 2024 and down 4% from Q2 2025 [1][4] - Gross profit for the quarter was $184.4 million, a 13% decrease year-over-year, with a gross margin of 29.1% [1][9] - Adjusted diluted EPS was $0.39, down 36% from $0.61 in Q3 2024 [1][10] Segment Performance - Nurse and Allied Solutions segment revenue was $361 million, a 9% decrease year-over-year, with travel nurse staffing revenue down 20% [5][36] - Physician and Leadership Solutions segment reported revenue of $178 million, down 1% year-over-year, while locum tenens revenue increased by 3% [6][36] - Technology and Workforce Solutions segment revenue was $95 million, a decrease of 12% year-over-year, primarily due to the sale of Smart Square scheduling software [8][36] Operational Highlights - Cash flow from operations was $23 million, and the company paid off its revolving line of credit with proceeds from the sale of Smart Square totaling $65 million [6][11] - The company refinanced its senior unsecured notes due in 2027 with new notes due in 2031, enhancing financial flexibility [12][13] - Staffing orders rebounded in Q3, with winter order volume higher than the previous year, indicating potential growth in travel nursing for Q4 [4][6] Guidance and Outlook - For Q4 2025, the company expects revenue to be 1-3% lower than the prior year but up 13-15% sequentially [15] - Labor disruption revenue is projected at approximately $100 million, compared to $62 million in the prior-year quarter [15] - The company anticipates a gross margin of 25.5% to 26.0% for Q4, reflecting a decrease due to lower margins on labor disruption revenue [14][15]

Core Points - AMN Healthcare Services, Inc. has scheduled a conference call to discuss its Q3 2025 financial results and Q4 2025 outlook on November 6, 2025, at 5:00 p.m. Eastern Time [1] - The earnings news release is expected to be issued after market close at approximately 4:15 p.m. Eastern Time on the same day [1] Access Information - A live webcast of the call will be available through a specific link and on AMN Healthcare's investor relations website [2] - Interested parties can participate live via telephone by registering at the conference call link, where a PIN will be provided for dial-in instructions [2] Replay Information - A replay of the webcast will be available on the Company's investor relations website following the conclusion of the call [3] Company Overview - AMN Healthcare is a leader in total talent solutions for healthcare, addressing workforce challenges to improve clinical outcomes and access to care [4] - In 2024, the Company's healthcare professionals reached nearly 15 million patients across more than 2,100 healthcare systems, including 87% of the top healthcare systems nationwide [4] - The Company offers a comprehensive network of quality healthcare professionals and a fully integrated suite of customizable workforce technologies [4] Stock Information - The Company's common stock is listed under the symbol "AMN" on the New York Stock Exchange [5] - For more information, the Company provides news releases, investor presentations, webcasts, SEC filings, and other material information on its website [5]

Summary of AMN Healthcare Services Conference Call Company Overview - **Company**: AMN Healthcare Services Inc. (NYSE: AMN) - **Industry**: Healthcare Staffing and Workforce Solutions - **Revenue**: Trailing twelve-month revenue is $2.8 billion - **Employees**: 2,900 corporate employees - **Business Segments**: - Nurse and Allied Solutions - Physician and Leadership Solutions - Technology and Workforce Solutions - **Core Focus**: Total talent solutions for healthcare providers across the U.S. [3][4] Key Points and Arguments Current State of the Healthcare Workforce - The company is experiencing a post-COVID normalization phase, focusing on reestablishing and building sustainable workforces that are high quality, affordable, and flexible [4] - There is a significant emphasis on technology enablement in both client solutions and internal operations [4] H1B Visa Impact - H1B visas represent less than 1% of AMN's consolidated revenue, with the majority of international nurses brought in on green cards [6][10] - Potential changes in immigration policies could affect the availability of clinical workers, particularly in rural markets, but AMN is well-positioned to navigate these changes [9][10] Debt Refinancing - AMN refinanced $750 million in debt, reducing the revolving facility to $450 million and issuing $400 million in new notes maturing in 2031 [11][12] - The refinancing aims to create a bulletproof balance sheet, allowing the company to focus on business operations and growth [12] Winter Seasonal Orders - The company is tracking winter orders positively, indicating stabilization in client demand and planning for high patient volumes [14][16] - Clients are increasingly focused on ensuring they have the right labor force in place ahead of the winter season [17] Competitive Environment - The healthcare staffing market has seen a shift from a $25 billion total addressable market (TAM) pre-COVID to mid to high $30 billion currently, with intense competition persisting [40] - AMN is focused on maintaining profitability and avoiding further gross margin compression [41] Market Signals and KPIs - Key indicators for market recovery include bill rate stabilization, increased utilization, and net strategic client growth [31][33] - AMN has seen an increase in the number of services sold to top strategic clients, indicating growth potential [33] International Business Recovery - Visa retrogression has previously impacted revenue, but AMN expects to see a return to positive year-over-year growth starting in Q1 next year as visa dates move forward [53][54] - The company anticipates recovering lost revenue and more due to favorable timing in visa processing [54] Future Outlook - AMN is focused on innovation and technology, particularly in AI enablement, to extend its leadership position in the market [56] - The company aims to fill more jobs and increase client growth over the next 12 to 18 months [56] Additional Important Insights - The company is adapting to changes in the MSP (Managed Service Provider) and vendor-neutral models, with a slight bias toward MSP in the current pipeline [42][44] - AMN has enhanced its VMS (Vendor Management System) platform, making it more competitive in the market [46][49] - The strategic value of supporting clients during strikes is recognized, with a significant pipeline of potential strike-related business [25][27] This summary encapsulates the key points discussed during the AMN Healthcare Services conference call, highlighting the company's current status, challenges, and future outlook in the healthcare staffing industry.

Core Points - AMN Healthcare Services, Inc. announced a private offering of $400 million senior unsecured notes due 2031 with an interest rate of 6.500% per annum [1] - The proceeds will be used to redeem $500 million of 4.625% senior unsecured notes due 2027 and to cover related fees and expenses [2] - A Conditional Notice of Redemption has been delivered for the 2027 Notes, with redemption scheduled for October 22, 2025, contingent on the successful completion of the 2031 Notes offering [3] - The 2031 Notes will be offered to qualified institutional buyers and non-U.S. persons, and will not be registered under the Securities Act [4] Company Overview - AMN Healthcare is a leader in total talent solutions for healthcare, addressing workforce challenges to improve clinical outcomes [6] - In 2024, AMN Healthcare professionals reached nearly 15 million patients across over 2,100 healthcare systems, including 87% of the top healthcare systems in the U.S. [6]

Core Viewpoint - AMN Healthcare Services, Inc. plans to offer $400 million in senior unsecured notes due 2031 to refinance existing debt and cover related expenses [1][2][3] Group 1: Offering Details - The company intends to use proceeds from the new offering, along with cash and borrowings, to redeem $500 million of its 4.625% senior unsecured notes due 2027 [2] - A Conditional Notice of Redemption will be sent to holders of the 2027 Notes, contingent on the successful completion of the 2031 Notes offering [3] - The 2031 Notes will be offered to qualified institutional buyers and non-U.S. persons, and will not be registered under the Securities Act [4] Group 2: Company Overview - AMN Healthcare is a leader in total talent solutions for healthcare, addressing workforce challenges to improve clinical outcomes [6] - In 2024, AMN Healthcare professionals served nearly 15 million patients across over 2,100 healthcare systems, including 87% of the top healthcare systems in the U.S. [6]

Core Insights - AMN Healthcare Services, Inc. reported adjusted earnings per share (EPS) of 30 cents for Q2 2025, a decline of 69.4% year over year, but exceeded the Zacks Consensus Estimate by 76.5% [1] - The company’s revenues for Q2 2025 were $658.2 million, down 11.1% year over year, yet also surpassed the Zacks Consensus Estimate by 0.9% [2] - AMN Healthcare's gross profit fell 14.5% year over year to $196.4 million, with a gross margin of 29.8% [7] Revenue Breakdown - The Nurse and Allied Solutions segment generated revenues of $381.9 million, down 13.7% year over year, with travel nurse staffing revenues declining by 25% [4] - The Physician and Leadership Solutions segment reported revenues of $174.5 million, a decrease of 6.2% year over year, with interim leadership revenues down 25% [5] - The Technology and Workforce Solutions segment's revenues totaled $101.8 million, down 9.3% year over year, with vendor management systems revenue declining by 31% [6] Margin and Financial Position - Selling, general & administrative expenses increased by 3.7% year over year to $154.6 million, while adjusted operating profit fell by 48.2% to $41.8 million [7] - AMN Healthcare ended Q2 2025 with cash and cash equivalents of $41.5 million, down from $55.8 million at the end of Q1 2025, and total debt decreased to $920 million from $1 billion [8] Future Guidance - For Q3 2025, AMN Healthcare expects revenues in the range of $610 million to $625 million, reflecting a decline of 9-11% compared to the prior year [11] - The company anticipates a decline of 11-14% in revenues for the Nurse and Allied Solutions segment and 12-14% for the Technology and Workforce Solutions segment in Q3 [12] Overall Assessment - The overall performance of AMN Healthcare in Q2 2025 was disappointing, with declines across all segments and contracting margins [13] - Despite the challenges, there was an encouraging uptick in Language interpretation services revenues and positive customer adoption of AMN Passport [14] - The recent sale of the Smart Square nurse scheduling software and the partnership with symplr is seen as a promising development for the company [15]